Electric car maker Tesla announced on Jan. 31 that it had incurred a gross impairment loss of $204 million for the year 2022 on its Bitcoin (BTC) holdings. This information was included in a filing that was sent to the United States Securities and Exchange Commission. During the same period, Tesla reported a profit of $64 million by exchanging BTC for fiat money at different periods during the year. However, the company’s cryptocurrency trading activities resulted in a net loss of $140 million for the year.

The presentation provided further explanation of the effect fluctuating cryptocurrency values ​​have on Tesla’s bottom line:

“In accordance with the relevant accounting standards, digital assets are classified as intangible assets with an indefinite useful life. In light of this, if their fair values ​​fall below our book values ​​for such assets at any time after their acquisition , we will be required to recognize impairment charges.On the other hand, we are not allowed to make any upward revision for any increase in market price until we actually sell the asset in question.Even if there is an increase in market value of these assets, there is a possibility that these charges could have a negative effect on our profitability in the periods in which such impairments occur for any digital assets held now or in the future.”

Tesla made an investment in Bitcoin worth 1.5 billion dollars during the first quarter of 2021. Elon Musk, the creator of the company, had just announced that the electric car manufacturer will begin receiving Bitcoin payments from customers located in the United States .

Solo unos pocos meses después, la decisión se revirtió porque Musk declaró la necesidad de “confirmar un consumo de energía limpia decente (al menos el 50 por ciento) por parte de[losminerosdeBitcoinconunatendenciafuturafavorable”antesdequelaempresavolvieraaaceptarelmétododepagoSegúninformesrecientesTeslaliquidóalrededordel75%desustenenciasdebitcoinsduranteelsegundotrimestrede2022[Bitcoinminerswithfavourablefuturetrend”beforethebusinesswouldonceagainacceptthemethodofpaymentAccordingtorecentreportsTeslaliquidatedaround75%ofitsbitcoinholdingsduringthesecondquarterof2022[losminerosdeBitcoinconunatendenciafuturafavorable”antesdequelaempresavolvieraaaceptarelmétododepagoSegúninformesrecientesTeslaliquidóalrededordel75%desustenenciasdebitcoinsduranteelsegundotrimestrede2022[Bitcoinminerswithfavourablefuturetrend”beforethebusinesswouldonceagainacceptthemethodofpaymentAccordingtorecentreportsTeslaliquidatedaround75%ofitsbitcoinholdingsduringthesecondquarterof2022